Bank of America: In June, long-term funds significantly reduced holdings in South Korean and Taiwanese stocks, shifting to buy Australian and Indian stocks.

Glonghui, July 21 – According to a Bank of America report, in June, long-term funds carried out significant profit-taking and rebalancing operations, reducing their holdings in South Korea (-$6.8 billion) and Taiwan (-$5 billion) equities. This appears to be more of a portfolio rebalancing rather than a full liquidation, as funds remain significantly overweight in Taiwan, South Korea, technology hardware, and semiconductor sectors. Meanwhile, funds purchased Australia (+$4.7 billion), India (+$3.7 billion), and China (+$3 billion). By industry, funds bought industrials (+$4.2 billion) and materials (+$4.2 billion) last month, and reduced their holdings in semiconductors (-$5.5 billion) and technology hardware (-$4.3 billion). This suggests that capital is shifting from previously popular technology sectors to cyclical sectors, signaling certain defensive or cyclical rotation characteristics.